Human Resources Leadership

June 2015Graham Hart

“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.” —Niccolo Machiavelli, The Prince (1532)

Overview

5. A New Theory of Motivation and Change

1. It’s not working Doc!

2. Getting Strategic about People

3. The HR Leader

4. HR Strategy Approach

It’s a VUCA world

“We trained hard ... but it seemed that every time we were beginning to form up into teams we would be reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing; and a wonderful method it can be for creating the illusion of progress while producing confusion, inefficiency, and demoralization.”

Charlton Ogburn (Writer)

HR strategy must be agile in order to pivot around these challenges

The population aged 45-64 will increase by 42% in the next 20 years.By comparison, youth groupings have barely increased in size since 2005. Source: PewResearchCenter and the Berkman Center at Harvard University

Demographics

64% of global CEOs are cutting costs in FY2014.25% plan to outsource parts of their processes or functions to save money. Source: PwC 2014 Global CEO Trends Survey

Cost-Cutting

48% of teens have a smartphone.69% of employees in a survey said that new technology will enhance productivity and facilitate employee/manager communication. Source: PewResearchCenter and the Berkman Center at Harvard University

Technological Shifts

McLean & Company’s HR Trends Survey identified that addressing looming skill gaps is a top priority both for HR and for business leaders.Source: McLean & Company 2015 HR Trends and Priorities Survey

Skill Gaps

Learning & Development ranked first in spend by the HR department. 60% of HR respondents say L&D is outsourced to a third party.Source: McLean & Company 2015 HR Trends and Priorities Survey

Learning & Development

There is an estimated 72% increase in the world’s urban population by 2050.Growth in developed countries is stalling or reversing for 83% of global CEOs.Source: PwC 2014 Global CEO Trends Survey

Population Power Shifts

4 Leadership Trends (CCL)

Historically 2 main Options Employed

Business leaders are challenging HR to step up its game

Transaction Management to delivering business value

• 16% of business respondents viewed HR as very effective overall.

• 14% of business respondents thought HR strategy in specific was effective, as opposed to 38% of HR respondents.

• 73% of business leaders want increased HR efficiency.

• 53% of business leaders want HR’s quality to improve.

• 34% of business leaders want HR to cut costs.

Business leaders are dissatisfied with HR’s performance

Source: McLean & Company 2015 HR Trends and Priorities Survey

Perceptions define our reality!

McClean and Company HR Trends 2015

Does HR deliver competitive advantage through people?

CIPD Survey 2014

HR FOCUS AREAS

Critical HR StrengthsAn analysis of the strengths of HR departments shows alignment with the current focus areas.

People skillso HR is still regarded as the custodian of people matters

in organisations, and are regarded as competent in dealing with employee relationship matters

Interviewing and assessmento HR is skilled in assessing applicants and conducting

applicable assessments – the typical “psychology” profile of HR is still very prevalent

Functional serviceso HR provides reasonable services in the Hire-to-retire

group of activities

Record keepingo Generally good manual recording systems

Getting Strategic About People

Scarce Resources

Industrial Age Money Physical AssetsManagement

Competence

Information Age Time Talent Management

Attention

It depends on how you see the world

Industrial Mindset Emerging Mindset

“Reality as a Great Machine” Separate Parts Power and Control Certainty / Predictability Objective / Knowable Discrete Events Entropy Order into Chaos

“Reality as a Living System” Wholeness / Relationship Co-create and ParticipateUncertainty / ProbabilitySubjective / Mysterious Continuous ProcessSelf-organizationOrder out of Chaos

HR strategy is about driving business results and helping the business strategy

cascade to other departments.- Director of HR, Insurance

Industry.

Identified HR 2015 Priorities

Make the Case: Align HR strategy with organisational goals and objectives

How HR Strategy Impacts HR

How HR Strategy Impacts the Business

Defining an HR strategy means organising HR's numerous strategies and plans around providing business value.

HR initiatives are prioritized and ordered to recognize dependencies and synergies, leading to increased efficiency in the HR function.

An HR strategy ensures the wise investment of business dollars for HR initiatives to help the business achieve its goals and objectives.

The HR strategy drives lower costs, increased output, and competitive advantage when HR activities are aligned with business drivers.

What CEO’s want from HR

.

HR Transformation

A theory isn’t much when it breaks down in practice

Still a Huge gap between theory and practice Like to be strategic but don’t know how Too much time discussing HR details that don’t relate to the

business They seek line manager approval and leadership and don’t

provide it themselves enough Lack detailed business knowledge to discuss it in the business Don’t tie HR initiatives to bottom line enough The use jargon that doesn’t appeal to Management or staff Don't bring enough to the strategic conversation Haven't helped other see why HR is at the top table

We too often lack the Iterative Process

Revise the theory

Evolving HR Models

We find that HR professionals deliver the most value when they focus on: (BERSIN)

Perspective of outside in

Good outcomes of talent, leadership and capability building

Fit for purpose HR practices

Growing HR professionals

The HR Leader

TWO POWERFUL PARADIGMS DIRECT US: Stephen Covey

Leadership Management

Definition

The art of influencing others to achieve their maximum performance, and to accomplish any task or objective

The science of obtaining results through the efforts of others

ObjectiveProduce constructive or adaptive change

Produce consistency and order

Influence Control

MANY ORGANISATIONS ARE UNDER MANAGED AND UNDER LED

The qualities of a transformational HR Leader MindsetBecoming a true "player" on

strategic business issues Able to challenge business

leaders on their own ground Architect who can

synthesize best practices e.g. Total Reward, Talent Management, OD, etc into integrated solutions and implement at speed

Shifting from advising and consulting to challenging, provoking, confronting business leaders

Letting go of the past and engaging with the future

It’s about where you focus !

Do we know where we are going?

We need an Organisational Architect Role

Becoming A Strategic Partner

A Blueprint for Strategy Development

1. Assess change readiness 2. Develop an understood framework of HR 3. Clarify Senior HR Leader’s role as

Organisational Architect4. Clarify line management role and Executive

ownership of HR strategy 5. Create a HR and Organisational People Plan 6. Look strategically at 5 main HR processes7. Get your HR Talent deployed 8. Understand and act on the politics and

roadblocks

Wait: Before you book that Strategy Day

•Has your organisation run out of options for easy improvements and acknowledges they see tough times ahead unless they start to think differently on how the manage people?

•Do you have a visionary leader that can really see the importance of developing the long term value of human capital ?

Change Readiness Do the leaders say and behave in a way that is congruent with people being

critical to our success? How is HR currently valued how strategic is it? How does HR support strategy?What impact does HR have on our business results?Who owns the HR Plan? (if there is one) What is managements role in implementing the HR Plan?How well does HR balance Employee and Organisational advocacy What is the political readiness in our organisation in transforming to Strategic

HR?Who would sponsor the HR change and why?How do we leverage the sponsors?Who would be the detractors and why? How do we work with the detractors?

Get a free HR change readiness questionnaire here www.mantle.co.nz/hrchange

HR Framework: Underlying Principles Talent is the engine behind the creation of all value Every business issue is a symptom of deeper human or

organisational issuesTalent will the resource of scarcity in the future All HR work must be connected to business Strategy and

customers needsLine management is responsible for Human resources work in

the organisation

Putting a strategic lens on 5 fundamentals

Business environment

Vision and Goals

Core Capabilities

TACTICS

STRATEGIES

A More Strategic ER Approach

Employee commitmen

t and competence

We need more joined up thinking on Learning and Development

Learning and

Development

A Strategy Development Process

Where are we on Vision Formulation?

Internal and External Influences

Vision timeline 10 Years

We identified key influencers

We have organised trends risks and change drivers

Constant No Choice Stakeholders Expect

Certain Worth considering

Important trend

Critical trend

Probable Worth monitoring

Worth considering

Important trend

Possible Can probably ignore

Worth monitoring

Important uncertainty

Will it occur? Minimal impact

Significant impact

Earth –shattering impact

Our most significant change drivers

SIGNIFICANT

CHANGE DRIVERS

1. Vision Formulation

What, where and when √

2. Strategy Clarification

How, interrelationships , same page?

√

3. Targets KPI’s What value , what targets? June 4. Cascade Strategy 4. Roll out how to contribute? 4. June 5. Project Portfolio 4. What will we do, stop,

prioritise?4. July

6. Implementation 4. How do we organise ourselves?

4. August

7. Resource and Accountability

4. Who and what 4. August

8. Project Planning 4. How will we manage projects?

4. August

9. Team Mobilisation 4. Getting everyone on board 4. From June 10. Project execution

and feedback 4. Progress , issues problems 4. From

September

11. Measuring results 4. How, what results?, what progress?

4. From October

12. Feedback and learning

4. Impact, learning, improvement

4. From October

Next Steps: Successful Strategy is About Thinking and Doing

A New Theory of Motivation and change

Our Brain builds hypotheses on the world

THE BRAIN TRIES TO HARDWARE WHATEVER IT CAN

LEADERSHIP IS DRIVEN BY YOUR MIND SET1.Optimistic rather than pessimistic 2.Solutions rather than problem based 3.Agile rather than fixed 4.Inquisitive rather than accepting 5.Courageous rather than timid 6.Self aware rather than self-denial 7.Comfortable with ambiguity

Human Dynamics in Transformation

HR needs to be a better business collaborator Working with stakeholders in

every department in the business is a necessity, to be

very honest. The key is to look for who owns the

information you want, and then partner with them to figure out how to improve.

– Jessica Phinn. VP of People and Engagement, Nelson

Education Ltd.

Technology Strategic Plan

Sales & Marketing Strategic

Plan

Finance Strategic

Plan

Business Strategy

Operations Strategic Plan

HR Strategy

What Should HR seek to Advance?

Cleaning up the HR house will require focus in the following areas.

HR functional leadershipSkills in HRValue of HR to businessBusiness leadershipTechnologyRadical process redesignMeasurementAccountability

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If you are interested in knowing more?•Check out our free resources •Sign up for our newsletter •Give me our email if you would like a copy of these overheads plus

• Our Key Steps to Building your Leadership Development Strategy,

• Change readiness tool • Key report references and links

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